dr.doolittle

China Gets It Right, But Hurts America

when will China spend money to create something other than a medieval financial system? People talk of China as if it has become a modern society. I've lived their and while there certainly is an urbanization going on, the society is still for the most part feudal. Spending money on "infrastructure" makes for a nice headline. Using BMW's to haul grain from Xinjian to Beijing doesn't make much sense, though, nor will it work. Needless to say getting into "labor laws" in China is a rather interesting topic. I see the exact opposite of what the author is claiming because he is assuming this spending of highly valuable US Treasury securities to build roads and bridges purely for the thrill of driving in China provides any economic benefit to the Chinese whatsover. I could not disagree more. In the meantime the United States is taking equity stakes in banks as it's "bailout" strategy. By definition this is orienting the US taxpayer away from non-productive "Auto-bahns for the masses" and towards a substantial interest in successful capitalistic approaches towards managing a vibrant economy. Indeed, the approaches by the US and China, as well as Britain for that matter, could not be more different. It would appear market participants are recognizing this and are "voting with their wallet" by bidding up in rather extraodinary fashion the value of the dollar. I think Mr. Browne would be more instructive to his readers if he were to discuss the Russian invasion of the nation of Georgia and the continuing reverberations of that event. This collapse on Wall Street began on that day and the Russian and so called "world economy" has been reeling ever sense. The implications of this seemingly insignificant event is having massive reverberations and in ways no one could have predicted. Still, patterns are beginning to emerge and so are the winners and losers and I don't think one needs a Phd. to point whose winning and losing right now nor much to simply point it out. Unless of course you're one of the losers.